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Goldman Sachs commits $100 million to support rural small business owners for capital and growth.
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$75 million allocated to community lenders, $15 million to community college courses, and $10 million as grants for local entrepreneurs.
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Survey reveals only 7% of rural entrepreneurs feel adequately supported by non-governmental entities.
Goldman Sachs commits $100 million to support rural small business owners secure capital and foster growth.
The financial institution's 10,000 Small Businesses program unveiled this vital investment through a press release issued on Friday, September 8. This initiative, which was established in 2009, has been instrumental in providing education, funding opportunities, and various forms of support to approximately 14,000 American entrepreneurs, as stated on the Goldman Sachs website.
The allocation of the new $100 million fund will be distributed among three key groups: $75 million will be directed towards community lenders supporting rural small business owners, $15 million will be channeled into community college courses hosted by the 10,000 Small Businesses organization, and the remaining $10 million will be disbursed as grants to local entrepreneurs.
Goldman Sachs underlined the pressing issue that many rural small business owners face when trying to expand their enterprises – the lack of access to essential capital investments. To underscore this point, the firm cited a survey that revealed only 7% of rural entrepreneurs felt they received adequate support from non-governmental entities. Furthermore, the barriers to expansion also include limited access to critical services such as child care, healthcare, and labor. Notably, these challenges have an adverse effect on economic growth, as these businesses employ approximately 65% of their local workforce.
Goldman Sachs has chosen to allocate a substantial portion of its $100 million investment to local businesses through indirect channels. Consequently, the success of its mission to assist these organizations and the communities they serve hinges on entrepreneurs' ability to capitalize on these new funds.
Goldman Sachs emphasized that rural small business owners play a critical role in their communities, offering employment opportunities, stimulating economic activity, and creating prospects for growth. However, conventional lenders and educational institutions often overlook these enterprises, primarily because they represent a smaller fraction of the national economy compared to their counterparts in more densely populated regions. Encouraging more entrepreneurs to leverage private and government programs designed to foster small business growth in underserved areas could help reverse these trends and contribute to a more equitable distribution of wealth across the nation.